Seán Haughey (Dublin North Central, Fianna Fail)

I am taking this adjournment on behalf of my colleague the Tánaiste and Minister for Education and Skills, Deputy Coughlan. I thank Senator Keaveney for raising this matter and I am sure she will appreciate it would not be appropriate for me to comment on any possible budgetary proposals.

The student service charge is levied by the higher education institutions to defray the costs of examinations, registration and student services. The range of student services may include such facilities as on-campus medical and counselling facilities for students, access and disability services, careers office services, student facilities, student clubs and societies. In accordance with the legal provisions, it is a matter for the institutions to determine the student services that are comprehended in their institution by the charge. The precise range of student services that comes under the ambit of the charge can vary to some degree across institutions in particular circumstances. However, the charge relates to broad student services and is not intended to relate to direct tuition costs.

For the academic year 2009-10, the Government indicated it was prepared to accept increases in the level of this charge to bring it to a limit of €1,500 in individual higher education institutions. No increase was applied to the charge for the current academic year, 2010-11. Students eligible under the means-tested student grant schemes do not have to pay this charge. It is paid on their behalf under the Department's student grant schemes in addition to any maintenance grant and tuition fee support to which they are entitled. Some 43% of undergraduate students fall into this category.

The use of the student service charge by higher education institutions to ensure the full income from the charge is being utilised on student services has been reviewed by the Higher Education Authority, HEA. The review has been completed and submitted to the Tánaiste and Minister for Education and Skills. It covers income and expenditure associated with the charge, internal allocation processes for same, arrangements for accounting for the charge and additional charges levied on students outside the charge. Officials from the Department are following up with the HEA on aspects of the report and its findings in more detail. It is envisaged the outcome of the review will lead to the adoption of accounting policies that can be applied in a consistent manner across the sectors and between institutions and to an examination and updating of the HEA's framework of good practice for the provision of student services.

With regard to student grants, the 66 grant-awarding authorities received an unprecedented number of student grant applications for the 2009-10 academic year with increases in applications up by 30% in some areas. It is acknowledged some students experienced delays in the processing of those grant applications. While pressures continue to exist in grant-awarding authorities due to the recruitment moratorium in the public sector, which has reduced their capacity to deal with the surge in demand, every effort is being made to ensure students get decisions on their grant applications and are paid as soon as possible for the current academic year.

In association with the grant-awarding authorities, the Department took several steps to improve service levels this year and to streamline administrative processes. Key among them were a simplification of the grant application form, a downloadable application form, advance payments to awarding authorities, a roll-out of payments by electronic funds transfer, the publication of the grant schemes two months earlier than last year and the introduction of a new on-line grant application system already operating in 11 grant-awarding authorities. For grant-awarding authorities, it will mean more timely and more accurate applications to help with the management of the application process.

In excess of 69,000 students received financial support from the Government under the student grant schemes in the 2009-10 academic year and this number is likely to rise further this year. With this volume, delays are inevitable if a large number of students leave their applications to the last minute or submit poorly completed forms. Unfortunately, up to 60% of applications have to be returned in some areas because they are incomplete. It is critical that fully completed application forms are submitted to the relevant local awarding authority as soon as possible and that all required supporting documentation is included to help the awarding bodies make prompt decisions on entitlement.

The consistent message which the Department has put out to students over the years is to encourage them to apply for a grant as soon as they have taken a decision to go to college. It uses various mechanisms to disseminate this message including through the students unions and other relevant groups. The Department also contacts all Central Applications Office, CAO, applicants using the CAO e-mail facility. The single most fundamental and radical restructuring of the whole student grants administration function is provided for in the Student Support Bill, which also provides for a single unified scheme. Committee Stage of this Bill will be taken on 25 November 2010. Several amendments relating to legal and policy issues arose since Second Stage and had to be finalised with the Attorney General's office. In addition, possible options for a more significant centralisation of functions have been explored in line with the Government's wider programme of public service reform. It has been decided the grants function will be administered by a single grant-awarding authority. The further amendments arising from the decision on this issue will also be dealt with on Committee Stage.

I thank the Senator for affording me the opportunity to respond on this matter.